The delimitation of Giffenity for the Wold-Juréen (1953) utility function using relative prices: a note
| Autor: | Robert Sproule |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
media_common.quotation_subject
Minor (linear algebra) Social Sciences Relative price giffen paradox Precondition Wold-Juréen (1953) utility function ddc:330 Economics Relative magnitude Function (engineering) a23 a22 HB71-74 D11 media_common wold-juréen (1953) utility function Economics as a science Giffen paradox Giffen good A22 Slutsky decomposition A23 General Economics Econometrics and Finance Mathematical economics slutsky decomposition d11 |
| Zdroj: | Economics : the Open-Access, Open-Assessment e-Journal, Vol 14, Iss 1 (2020) |
| ISSN: | 1864-6042 |
| Popis: | In the study of Giffen behavior or “Giffenity”, there remains a paradox. On the one hand, the Wold-Juréen (1953) utility function has been touted as the progenitor of a multi-decade search for those two-good, particular utility functions, which exhibit Giffenity. On the other hand, there is no evidence that the Wold-Juréen (1953) utility function has ever been fully evaluated for Giffenity, with perhaps one minor exception, Weber (, 1997). But there, Weber showed that the Giffenity of Good 1 depends upon the relative magnitude of income vis-à-vis the price of Good 2. Weber’s precondition is so vague that it lacks broad appeal. This paper offers a new and a clear cut precondition for Giffen behavior under the Wold-Juréen (1953) utility function. That is, we show that if the price of Good 1 is greater than or equal to the price of Good 2, then Good 1 is a Giffen good. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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